Dear MEL
Topic Readers,
A
look at the latest twist in Puerto Rico's debt saga
The
Commonwealth of Puerto Rico, located in the Caribbean Sea, is an unincorporated
territory of the United States. Though both English and Spanish are set as
their official languages, the latter is widely spoken among the 3.5 million
residents in the islands.
Their
economy been struggling for a decade and the government has been relying heavily
on bonds to make up the shortfall of income too much for too long. It was
fortunate for Puerto Rico to have been able to sell such bonds to American investors
who wanted to enjoy the tax break. It was unfortunate that the territory hasn’t
recovered from recession and the government’s debts have mounted to the level that
the islandic territory can no longer sustain.
While
the commonwealth’s financial future is under the hand of a US judge now, their
political status is going to be judged by the residents in the fifth of such referendums
due in June.
Enjoy
reading and learning about the financial crisis of this tropical state.
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